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Purchases Of Crude Oil And Products - SUNCOR ENERGY INC - 10-28-2005

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					                                                                            EXHIBIT 99.3
                                          
Interim Unaudited Financial Statements of Suncor Energy Inc. for the Third fiscal
                      quarter ended September 30, 2005
                                          
consolidated statements of earnings
(unaudited)
  
  
                                                          
                                                                      Third quarter                          
                                                                                                                Nine months ended Sept 30                  




($ millions)                                              
                                                                   2005           2004
                                                                                                             
                                                                                                                  2005            2004
                                                                                                                                                           




Revenues (note 12)                                        
                                                                     3 142              
                                                                                           2 326             
                                                                                                                    7 583              
                                                                                                                                          6 344            




Expenses                                                                                                                                                   




 Purchases of crude oil and products                      
                                                                     1 311              
                                                                                             806             
                                                                                                                    3 166              
                                                                                                                                          2 114            




 Operating, selling and general (note 6)                  
                                                                       534              
                                                                                             396             
                                                                                                                    1 462              
                                                                                                                                          1 241            




 Energy marketing and trading activities (note 3)         
                                                                       230              
                                                                                             118             
                                                                                                                      573              
                                                                                                                                            295            




 Transportation and other costs                           
                                                                        35              
                                                                                              40             
                                                                                                                      102              
                                                                                                                                             96            




 Depreciation, depletion and amortization (note 2)        
                                                                       174              
                                                                                             183             
                                                                                                                      507              
                                                                                                                                            536            




 Accretion of asset retirement obligations                
                                                                         8              
                                                                                               6             
                                                                                                                       23              
                                                                                                                                             19            




 Exploration                                              
                                                                        29              
                                                                                              10             
                                                                                                                       48              
                                                                                                                                             48            




 Royalties (note 9)                                       
                                                                       172              
                                                                                             153             
                                                                                                                      410              
                                                                                                                                            381            




 Taxes other than income taxes                            
                                                                       160              
                                                                                             140             
                                                                                                                      406              
                                                                                                                                            404            




 Loss (gain) on disposal of assets                        
                                                                        —               
                                                                                               3             
                                                                                                                       (1 )                   3            




 Project start-up costs                                   
                                                                         7              
                                                                                               1             
                                                                                                                       13              
                                                                                                                                             23            




 
 Financing expenses (income) (notes 2 and 4)
     
                                                          
                                                                       (58 )                 (47 )                    (30 )                  65            




                                                          
                                                                     2 602              
                                                                                           1 809             
                                                                                                                    6 679              
                                                                                                                                          5 225            




Earnings Before Income Taxes                              
                                                                       540              
                                                                                             517             
                                                                                                                      904              
                                                                                                                                          1 119            




Provision for Income Taxes (note 2)                                                                                                                        




  Current                                                 
                                                                       (16 )                 19              
                                                                                                                       37              
                                                                                                                                            43             




 
  Future
     
                                                          
                                                                       215              
                                                                                            161              
                                                                                                                      316              
                                                                                                                                           321             




                                                          
                                                                       199              
                                                                                            180              
                                                                                                                      353              
                                                                                                                                           364             




Net Earnings                                              
                                                                       341              
                                                                                            337              
                                                                                                                      551              
                                                                                                                                           755             




Per Common Share (dollars), (note 5)                                                                                                                       




   Basic                                                  
                                                                      0.75              
                                                                                            0.74             
                                                                                                                      1.21             
                                                                                                                                           1.67            




   Diluted                                                
                                                                      0.73              
                                                                                            0.73             
                                                                                                                      1.18             
                                                                                                                                           1.64            




Cash dividends                                            
                                                                      0.06              
                                                                                            0.06             
                                                                                                                      0.18             
                                                                                                                                           0.17            




  
See accompanying notes.
                                                                
                                                             16
                                                              
consolidated balance sheets
(unaudited)
  
  
                                                                                    
                                                                                       September 30                                              
                                                                                                                                                    December 31                




($ millions)                                                                        
                                                                                           2005                                                  
                                                                                                                                                       2004                    




Assets                                                                                                                                                                         




   Current assets                                                                                                                                                              




     Cash and cash equivalents                                                      
                                                                                                85                                               
                                                                                                                                                            88                 




     Accounts receivable                                                            
                                                                                             1 266                                               
                                                                                                                                                           627                 




     Inventories                                                                    
                                                                                               456                                               
                                                                                                                                                           423                 




     Future income taxes                                                            
                                                                                                89                                               
                                                                                                                                                            57                 




   Total current assets                                                             
                                                                                             1 896                                               
                                                                                                                                                         1 195                 




   Property, plant and equipment, net (note 2)                                      
                                                                                            12 179                                               
                                                                                                                                                        10 326                 




   Deferred charges and other                                                       
                                                                                               473                                               
                                                                                                                                                           320                 




   Total assets                                                                     
                                                                                            14 548                                               
                                                                                                                                                        11 841                 




Liabilities and Shareholders’ Equity                                                                                                                                           




   Current liabilities                                                                                                                                                         




     Short-term debt                                                                
                                                                                                  4                                              
                                                                                                                                                             30                




     Accounts payable and accrued liabilities
       (note 9)                                                                     
                                                                                             1 916                                               
                                                                                                                                                         1 306                 




     Income taxes payable                                                           
                                                                                                 8                                               
                                                                                                                                                            32                 




     Taxes other than income taxes                                                  
                                                                                                21                                               
                                                                                                                                                            41                 




   Total current liabilities                                                        
                                                                                             1 949                                               
                                                                                                                                                         1 409                 




   Long-term debt                                                                   
                                                                                             3 336                                               
                                                                                                                                                         2 217                 




   Accrued liabilities and other                                                    
                                                                                               925                                               
                                                                                                                                                           749                 




   Future income taxes (note 2)                                                     
                                                                                             2 893                                               
                                                                                                                                                         2 545                 




   Shareholders’ equity (see below)                                                 
                                                                                             5 445                                               
                                                                                                                                                         4 921                 




   Total liabilities and shareholders’ equity                                       
                                                                                            14 548                                               
                                                                                                                                                        11 841                 




                                                                                                                                                                  
Shareholders’ Equity
     
                                                                                                                                                                               




     
                                                      
                                                           Number                                                  
                                                                                                                        Number                                                 




                                                      
                                                         (thousands)                                               
                                                                                                                      (thousands)                                              




Share capital                                         
                                                            457 288                 
                                                                                               723                 
                                                                                                                         454 241                 
                                                                                                                                                            651                




Contributed surplus                                                                 
                                                                                                43                                               
                                                                                                                                                             32                




Cumulative foreign currency translation                                             
                                                                                               (83 )                                             
                                                                                                                                                            (55 )
Retained earnings (note 2)
     
                                                                                    
                                                                                             4 762                                               
                                                                                                                                                          4 293                




                                                                                    
                                                                                             5 445                                               
                                                                                                                                                          4 921                




  
See accompanying notes.
                                                              
                                                           17
                                                     
consolidated statements of cash flows
(unaudited)
  
                                                                                                              Nine months
                                                             
                                                                   Third quarter                        
                                                                                                             ended Sept 30                          




($ millions)                                                 
                                                                2005          2004
                                                                                                        
                                                                                                           2005         2004
                                                                                                                                                    




Operating Activities                                                                                                                                




Cash flow from operations                                    
                                                                   651              
                                                                                       585              
                                                                                                            1 250             
                                                                                                                                 1 489              




Decrease (increase) in operating working capital                                                                                                    




   Accounts receivable                                       
                                                                  (429 )                 43             
                                                                                                             (604 )                (176 )
   Inventories                                               
                                                                    44              
                                                                                         37             
                                                                                                                4             
                                                                                                                                    (66 )
   Accounts payable and accrued liabilities                  
                                                                   154              
                                                                                         47             
                                                                                                              607             
                                                                                                                                    301             




   Taxes payable                                             
                                                                   (19 )                  9             
                                                                                                              (47 )                   6             




Cash flow from operating activities                          
                                                                   401              
                                                                                        721             
                                                                                                            1 210             
                                                                                                                                  1 554             




Cash Used in Investing Activities                            
                                                                  (836 )               (478 )              (2 354 )              (1 175 )
Net Cash Surplus (Deficiency) Before Financing
Activities                                                   
                                                                  (435 )               243              
                                                                                                           (1 144 )                379              




Financing Activities                                                                                                                                




Increase (decrease) in short-term debt                       
                                                                    (6 )                (25 )                 (26 )                (19 )
Net increase (decrease) in other long-term debt              
                                                                   483              
                                                                                       (109 )               1 141             
                                                                                                                                  (577 )
Issuance of common shares under stock option plan            
                                                                    10              
                                                                                          7             
                                                                                                               62             
                                                                                                                                    27              




Dividends paid on common shares                              
                                                                   (26 )                (27 )                 (77 )                (72 )
Deferred revenue                                             
                                                                    11              
                                                                                         11             
                                                                                                               41             
                                                                                                                                    11              




Cash provided by (used in) financing activities              
                                                                   472              
                                                                                       (143 )               1 141             
                                                                                                                                  (630 )
Increase (Decrease) in Cash and Cash Equivalents             
                                                                    37              
                                                                                        100             
                                                                                                               (3 )               (251 )
Effect of Foreign Exchange on Cash and Cash
Equivalents                                                  
                                                                    —               
                                                                                        (2 )                   —              
                                                                                                                                    (2 )
Cash and Cash Equivalents at Beginning of Period             
                                                                    48              
                                                                                        37              
                                                                                                               88             
                                                                                                                                   388              




Cash and Cash Equivalents at End of Period                   
                                                                    85              
                                                                                       135              
                                                                                                               85             
                                                                                                                                   135              




  
See accompanying notes.
                                                     
                                                  18

                                                     
consolidated statements of changes in shareholders’ equity
(unaudited)
  
                                                                                                        
                                                                                                           Cumulative                                    




                                                                                                        
                                                                                                             Foreign                                     




                                                     
                                                        Share                 
                                                                                 Contributed            
                                                                                                            Currency          
                                                                                                                                 Retained                




($ millions)                                         
                                                        Capital               
                                                                                  Surplus               
                                                                                                           Translation        
                                                                                                                                 Earnings                




At December 31, 2003, as previously
    reported                                         
                                                                   604        
                                                                                               7        
                                                                                                                   (26)                     3 294        




Retroactive adjustment for change in   
    accounting policy, net of tax (note 2)           
                                                                    —         
                                                                                              —         
                                                                                                                    —         
                                                                                                                                               14        




At December 31, 2003, as restated                    
                                                                   604        
                                                                                               7        
                                                                                                                   (26)                     3 308        




Net earnings                                         
                                                                    —         
                                                                                              —         
                                                                                                                    —         
                                                                                                                                              755        




Dividends paid on common shares                      
                                                                    —         
                                                                                              —         
                                                                                                                    —         
                                                                                                                                              (72)
Issued for cash under stock option plan              
                                                                    27        
                                                                                              —         
                                                                                                                    —         
                                                                                                                                               —         




Issued under dividend reinvestment plan              
                                                                     5        
                                                                                              —         
                                                                                                                    —         
                                                                                                                                               (5)
Stock-based compensation expense                     
                                                                    —         
                                                                                              19        
                                                                                                                    —         
                                                                                                                                               —         




Foreign currency translation adjustment              
                                                                    —         
                                                                                              —         
                                                                                                                   (10)                        —         




At September 30, 2004                                
                                                                   636        
                                                                                              26        
                                                                                                                   (36)                     3 986        




At December 31, 2004, as previously
    reported                                         
                                                                   651        
                                                                                              32        
                                                                                                                   (55)                     4 269        




Retroactive adjustment for change in   
    accounting policy, net of tax (note 2)           
                                                                    —         
                                                                                              —         
                                                                                                                    —         
                                                                                                                                               24        




At December 31, 2004, as restated                    
                                                                   651        
                                                                                              32        
                                                                                                                   (55)                     4 293        




Net earnings                                         
                                                                    —         
                                                                                              —         
                                                                                                                    —         
                                                                                                                                              551        




Dividends paid on common shares                      
                                                                    —         
                                                                                              —         
                                                                                                                    —         
                                                                                                                                              (77)
Issued for cash under stock option plan              
                                                                    67        
                                                                                              (5)                   —         
                                                                                                                                               —         




Issued under dividend reinvestment plan              
                                                                     5        
                                                                                              —         
                                                                                                                    —         
                                                                                                                                               (5)
Stock-based compensation expense                     
                                                                    —         
                                                                                              16        
                                                                                                                    —         
                                                                                                                                               —         




Foreign currency translation adjustment              
                                                                    —         
                                                                                              —         
                                                                                                                   (28 )                       —         




At September 30, 2005                                
                                                                   723        
                                                                                              43        
                                                                                                                   (83 )                    4 762        




  
See accompanying notes.
  
                                                            
                                                         19
                                                                                                                                
schedules of segmented data
(unaudited)
  
                                     
                                                                                                                                                                                                                                          Third quarter                        




                                                                                                                         Energy Marketing                     Refining and
                                                                                                                      
                                                                                                                          and Refining —                  
                                                                                                                                                              Marketing —                   
                                                                                                                                                                                                Corporate and                                                                  




                                     
                                           Oil Sands                          
                                                                                   Natural Gas                        
                                                                                                                             Canada                       
                                                                                                                                                                  U.S.A                     
                                                                                                                                                                                                Eliminations                    
                                                                                                                                                                                                                                          Total                                




($ millions)                         
                                        2005       2004
                                                                              
                                                                                 2005       2004
                                                                                                                      
                                                                                                                         2005       2004
                                                                                                                                                          
                                                                                                                                                             2005       2004
                                                                                                                                                                                            
                                                                                                                                                                                               2005       2004
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                   2005              
                                                                                                                                                                                                                                                             2004              




EARNINGS                                                                                                                                                                                                                                                                       




Revenues                                                                                                                                                                                                                                                                       




Operating revenues                   
                                           623          
                                                                847           
                                                                                    168          
                                                                                                         135          
                                                                                                                            982           
                                                                                                                                             785          
                                                                                                                                                                924          
                                                                                                                                                                                437         
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                    2 697            
                                                                                                                                                                                                                                                              2 204            




Energy marketing and trading
  activities                         
                                            —           
                                                                  —           
                                                                                     —           
                                                                                                          —           
                                                                                                                            234           
                                                                                                                                             121          
                                                                                                                                                                 —           
                                                                                                                                                                                 —          
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                     234             
                                                                                                                                                                                                                                                                121            




Net insurance proceeds (note
  12)                                
                                           211          
                                                                 —            
                                                                                     —           
                                                                                                          —           
                                                                                                                              —           
                                                                                                                                              —           
                                                                                                                                                                 —           
                                                                                                                                                                                 —          
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                      211            
                                                                                                                                                                                                                                                                 —             




Intersegment revenues                
                                           163          
                                                                110           
                                                                                      6          
                                                                                                           5          
                                                                                                                              —           
                                                                                                                                              —           
                                                                                                                                                                 —           
                                                                                                                                                                                 —          
                                                                                                                                                                                                 (169 )           (115 )               —             
                                                                                                                                                                                                                                                                 —             




Interest                             
                                            —           
                                                                 —            
                                                                                     —           
                                                                                                          —           
                                                                                                                              —           
                                                                                                                                              —           
                                                                                                                                                                 —           
                                                                                                                                                                                  1         
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                       —             
                                                                                                                                                                                                                                                                  1            
     




                                     
                                           997          
                                                                957           
                                                                                    174          
                                                                                                         140          
                                                                                                                           1 216          
                                                                                                                                             906          
                                                                                                                                                                924          
                                                                                                                                                                                438         
                                                                                                                                                                                                 (169 )           (115 )            3 142            
                                                                                                                                                                                                                                                              2 326            




Expenses                                                                                                                                                                                                                                                                       




Purchases of crude oil and
  products                           
                                             8          
                                                                  33          
                                                                                     —           
                                                                                                          —           
                                                                                                                            740           
                                                                                                                                             533          
                                                                                                                                                                731          
                                                                                                                                                                                353         
                                                                                                                                                                                                 (168 )           (113 )            1 311            
                                                                                                                                                                                                                                                                806            




Operating, selling and
  general                            
                                           281          
                                                                193           
                                                                                     25          
                                                                                                          22          
                                                                                                                            114           
                                                                                                                                             105          
                                                                                                                                                                 48          
                                                                                                                                                                                 23         
                                                                                                                                                                                                   66          
                                                                                                                                                                                                                    53          
                                                                                                                                                                                                                                     534             
                                                                                                                                                                                                                                                                396            




Energy marketing and trading
  activities                         
                                            —           
                                                                  —           
                                                                                     —           
                                                                                                          —           
                                                                                                                            230           
                                                                                                                                             118          
                                                                                                                                                                 —           
                                                                                                                                                                                 —          
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                     230             
                                                                                                                                                                                                                                                                118            




Transportation and other
  costs                              
                                            23          
                                                                  27          
                                                                                      5          
                                                                                                           5          
                                                                                                                               1          
                                                                                                                                               1          
                                                                                                                                                                  6          
                                                                                                                                                                                  7         
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                       35            
                                                                                                                                                                                                                                                                    40         




Depreciation, depletion and
  amortization                       
                                           112          
                                                                126           
                                                                                     36          
                                                                                                          29          
                                                                                                                             18           
                                                                                                                                              18          
                                                                                                                                                                  6          
                                                                                                                                                                                  9         
                                                                                                                                                                                                    2          
                                                                                                                                                                                                                     1          
                                                                                                                                                                                                                                     174             
                                                                                                                                                                                                                                                                183            




Accretion of asset retirement
  obligations                        
                                             7          
                                                                  5           
                                                                                      1          
                                                                                                           1          
                                                                                                                             —            
                                                                                                                                              —           
                                                                                                                                                                 —           
                                                                                                                                                                                 —          
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                       8             
                                                                                                                                                                                                                                                                  6            




Exploration                          
                                            —           
                                                                 —            
                                                                                     29          
                                                                                                          10          
                                                                                                                             —            
                                                                                                                                              —           
                                                                                                                                                                 —           
                                                                                                                                                                                 —          
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                      29             
                                                                                                                                                                                                                                                                 10            




Royalties                            
                                           136          
                                                                122           
                                                                                     36          
                                                                                                          31          
                                                                                                                             —            
                                                                                                                                              —           
                                                                                                                                                                 —           
                                                                                                                                                                                 —          
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                     172             
                                                                                                                                                                                                                                                                153            




Taxes other than income taxes        
                                            20          
                                                                 18           
                                                                                      1          
                                                                                                          —           
                                                                                                                             86           
                                                                                                                                              90          
                                                                                                                                                                 53          
                                                                                                                                                                                 32         
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                     160             
                                                                                                                                                                                                                                                                140            




Loss (gain) on disposal of
  assets                             
                                            —           
                                                                  4           
                                                                                     —           
                                                                                                          —           
                                                                                                                              —           
                                                                                                                                              (1 )               —           
                                                                                                                                                                                 —          
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                       —             
                                                                                                                                                                                                                                                                  3            




Project start-up costs               
                                             7          
                                                                  1           
                                                                                     —           
                                                                                                          —           
                                                                                                                              —           
                                                                                                                                              —           
                                                                                                                                                                 —           
                                                                                                                                                                                 —          
                                                                                                                                                                                                   —           
                                                                                                                                                                                                                    —           
                                                                                                                                                                                                                                        7            
                                                                                                                                                                                                                                                                  1            




Financing expenses                   
                                            —           
                                                                 —            
                                                                                     —           
                                                                                                          —           
                                                                                                                              —           
                                                                                                                                              —           
                                                                                                                                                                 —           
                                                                                                                                                                                 —          
                                                                                                                                                                                                  (58 )            (47 )              (58 )                     (47 )
     




                                     
                                           594          
                                                                529           
                                                                                    133          
                                                                                                          98          
                                                                                                                           1 189          
                                                                                                                                             864          
                                                                                                                                                                844          
                                                                                                                                                                                424         
                                                                                                                                                                                                 (158 )           (106 )            2 602            
                                                                                                                                                                                                                                                              1 809            




Earnings (loss) before
  income taxes                       
                                           403          
                                                                 428          
                                                                                     41          
                                                                                                          42          
                                                                                                                              27          
                                                                                                                                              42          
                                                                                                                                                                 80          
                                                                                                                                                                                 14         
                                                                                                                                                                                                  (11 )             (9 )              540            
                                                                                                                                                                                                                                                                517            




Income taxes                         
                                          (150 )                (165 )              (17 )                (19 )               (10 )           (13 )              (30 )             1         
                                                                                                                                                                                                    8          
                                                                                                                                                                                                                    16          
                                                                                                                                                                                                                                     (199 )                    (180 )
Net earnings (loss)                  
                                           253          
                                                                 263          
                                                                                     24          
                                                                                                          23          
                                                                                                                              17          
                                                                                                                                              29          
                                                                                                                                                                 50          
                                                                                                                                                                                 15         
                                                                                                                                                                                                   (3 )              7          
                                                                                                                                                                                                                                      341            
                                                                                                                                                                                                                                                                337            




  
                                                                                                                               
                                                                                                                            20
(unaudited)
  
                                         
                                                                                                                                                                                                                                                  Third quarter                           




                                                                                                                                Energy Marketing                      Refining and
                                                                                                                             
                                                                                                                                 and Refining —                   
                                                                                                                                                                      Marketing —                    
                                                                                                                                                                                                         Corporate and                                                                    




                                         
                                               Oil Sands                          
                                                                                      Natural Gas                            
                                                                                                                                    Canada                        
                                                                                                                                                                          U.S.A                      
                                                                                                                                                                                                         Eliminations                   
                                                                                                                                                                                                                                                  Total                                   




($ millions)                             
                                            2005      2004
                                                                                  
                                                                                     2005      2004
                                                                                                                             
                                                                                                                                2005       2004
                                                                                                                                                                  
                                                                                                                                                                     2005       2004
                                                                                                                                                                                                     
                                                                                                                                                                                                        2005      2004
                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                           2005                   
                                                                                                                                                                                                                                                                         2004             




CASH FLOW BEFORE
  FINANCING ACTIVITIES                                                                                                                                                                                                                                                                    




Cash flow from (used in)
  operating activities:                                                                                                                                                                                                                                                                   




    Cash flow from (used in)
       operations                                                                                                                                                                                                                                                                         




    Net earnings (loss)                  
                                               253          
                                                                    263           
                                                                                         24          
                                                                                                                 23          
                                                                                                                                     17           
                                                                                                                                                     29           
                                                                                                                                                                         50          
                                                                                                                                                                                         15          
                                                                                                                                                                                                            (3 )            7           
                                                                                                                                                                                                                                              341                 
                                                                                                                                                                                                                                                                           337            




    Exploration expenses                 
                                                —           
                                                                     —            
                                                                                         29          
                                                                                                                 10          
                                                                                                                                     —            
                                                                                                                                                     —            
                                                                                                                                                                         —           
                                                                                                                                                                                         —           
                                                                                                                                                                                                            —           
                                                                                                                                                                                                                            —           
                                                                                                                                                                                                                                               29                 
                                                                                                                                                                                                                                                                            10            




    Non-cash items included in
       earnings                                                                                                                                                                                                                                                                           




       Depreciation, depletion
           and amortization              
                                               112          
                                                                    126           
                                                                                         36          
                                                                                                                 29          
                                                                                                                                     18           
                                                                                                                                                     18           
                                                                                                                                                                          6          
                                                                                                                                                                                          9          
                                                                                                                                                                                                             2          
                                                                                                                                                                                                                             1          
                                                                                                                                                                                                                                              174                 
                                                                                                                                                                                                                                                                           183            




       Income taxes                      
                                               150          
                                                                    165           
                                                                                         17          
                                                                                                                 19          
                                                                                                                                     10           
                                                                                                                                                     13           
                                                                                                                                                                         30          
                                                                                                                                                                                         (1 )                8          
                                                                                                                                                                                                                           (35 )              215                 
                                                                                                                                                                                                                                                                           161            




       Loss (gain) on disposal
           of assets                     
                                                —           
                                                                       4          
                                                                                         —           
                                                                                                                 —           
                                                                                                                                     —            
                                                                                                                                                      (1 )               —           
                                                                                                                                                                                         —           
                                                                                                                                                                                                            —           
                                                                                                                                                                                                                            —           
                                                                                                                                                                                                                                                  —               
                                                                                                                                                                                                                                                                                3         




       Stock-based
           compensation expense          
                                                —           
                                                                      —           
                                                                                         —           
                                                                                                                 —           
                                                                                                                                     —            
                                                                                                                                                      —           
                                                                                                                                                                         —           
                                                                                                                                                                                         —           
                                                                                                                                                                                                             6          
                                                                                                                                                                                                                            10          
                                                                                                                                                                                                                                                6                 
                                                                                                                                                                                                                                                                             10           




       Other                             
                                                 2          
                                                                      (5 )               (2 )                    (2 )                (1 )             2           
                                                                                                                                                                         (4 )            (1 )              (61 )           (70 )              (66 )                         (76 )
    Overburden removal outlays           
                                               (68 )                 (51 )               —           
                                                                                                                 —           
                                                                                                                                     —            
                                                                                                                                                      —           
                                                                                                                                                                         —           
                                                                                                                                                                                         —           
                                                                                                                                                                                                            —           
                                                                                                                                                                                                                            —           
                                                                                                                                                                                                                                              (68 )                         (51 )
    Increase (decrease) in
       deferred credits and other        
                                                (4 )                   7          
                                                                                         —           
                                                                                                                  1          
                                                                                                                                     —            
                                                                                                                                                      (9 )               —           
                                                                                                                                                                                         (1 )               24          
                                                                                                                                                                                                                           10           
                                                                                                                                                                                                                                                  20              
                                                                                                                                                                                                                                                                                8         




Total cash flow from (used in)
  operations                             
                                               445          
                                                                    509           
                                                                                        104          
                                                                                                                 80          
                                                                                                                                     44           
                                                                                                                                                     52           
                                                                                                                                                                         82          
                                                                                                                                                                                         21          
                                                                                                                                                                                                           (24 )           (77 )              651                 
                                                                                                                                                                                                                                                                           585            




Decrease (increase) in operating
  working capital                        
                                              (230 )                  18          
                                                                                        (14 )                    26          
                                                                                                                                     22           
                                                                                                                                                      (9 )              118          
                                                                                                                                                                                         82          
                                                                                                                                                                                                          (146 )           19           
                                                                                                                                                                                                                                             (250 )                        136            




Total cash flow from (used in)
  operating activities                   
                                               215          
                                                                    527           
                                                                                         90          
                                                                                                                106          
                                                                                                                                     66           
                                                                                                                                                     43           
                                                                                                                                                                        200          
                                                                                                                                                                                        103          
                                                                                                                                                                                                          (170 )           (58 )              401                 
                                                                                                                                                                                                                                                                           721            




Cash from (used in) investing
  activities:                                                                                                                                                                                                                                                                             




Capital and exploration
  expenditures                           
                                              (563 )                (305 )              (87 )                   (53 )              (114 )            (67 )              (95 )           (52 )              (17 )            (8 )             (876 )                        (485 )
Proceeds from property loss              
                                                44          
                                                                      —           
                                                                                         —           
                                                                                                                 —           
                                                                                                                                     —            
                                                                                                                                                      —           
                                                                                                                                                                         —           
                                                                                                                                                                                         —           
                                                                                                                                                                                                            —           
                                                                                                                                                                                                                            —           
                                                                                                                                                                                                                                               44                 
                                                                                                                                                                                                                                                                             —            




Deferred maintenance shutdown
  expenditures                           
                                                (4 )                  (1 )               (3 )                    —           
                                                                                                                                     —            
                                                                                                                                                       4          
                                                                                                                                                                         (3 )            (1 )               —           
                                                                                                                                                                                                                            —           
                                                                                                                                                                                                                                              (10 )                             2         




Deferred outlays and other
  investments                            
                                                —           
                                                                      —           
                                                                                         —           
                                                                                                                 —           
                                                                                                                                        1         
                                                                                                                                                      —           
                                                                                                                                                                         —           
                                                                                                                                                                                         —           
                                                                                                                                                                                                            2           
                                                                                                                                                                                                                            —           
                                                                                                                                                                                                                                                   3              
                                                                                                                                                                                                                                                                                —         




Proceeds from disposals                  
                                                —           
                                                                      2           
                                                                                         2           
                                                                                                                 3           
                                                                                                                                        1         
                                                                                                                                                      —           
                                                                                                                                                                         —           
                                                                                                                                                                                         —           
                                                                                                                                                                                                            —           
                                                                                                                                                                                                                            —           
                                                                                                                                                                                                                                                   3              
                                                                                                                                                                                                                                                                                5         




Total cash (used in) investing
  activities                             
                                              (523 )                (304 )              (88 )                   (50 )              (112 )            (63 )              (98 )           (53 )              (15 )            (8 )             (836 )                        (478 )
Net cash surplus (deficiency)
 before financing activities             
                                              (308 )                223           
                                                                                          2          
                                                                                                                 56          
                                                                                                                                    (46 )            (20 )              102          
                                                                                                                                                                                         50          
                                                                                                                                                                                                          (185 )           (66 )             (435 )                        243            




  
                                                                                                                                     
                                                                                                                                  21

                                                                                                                                     
(unaudited)
  
                                           
                                                                                                                                                                                                 Nine months ended September 30                                                             




                                                                       Energy
                                                                     Marketing                                                                                   Refining and                             Corporate
                                                           Natural  and Refining                                                                                 Marketing —                                  and
                                           
                                              Oil Sands      Gas     — Canada                                                                                 
                                                                                                                                                                    U.S.A.                            
                                                                                                                                                                                                         Eliminations                          
                                                                                                                                                                                                                                                      Total                                 




($ millions)                               
                                              2005   2004 2005 2004 2005 2004
                                                                                                                                                              
                                                                                                                                                                 2005   2004                          
                                                                                                                                                                                                         2005   2004                           
                                                                                                                                                                                                                                                  2005     2004                             




EARNINGS                                                                                                                                                                                                                                                                                    




Revenues                                                                                                                                                                                                                                                                                    




Operating revenues                                                    2                                                     2                                       1
                                           
                                               1 636             
                                                                    350            
                                                                                      429            
                                                                                                        358            
                                                                                                                          634            
                                                                                                                                            2 227             
                                                                                                                                                                  910             
                                                                                                                                                                                     1 098            
                                                                                                                                                                                                            1             
                                                                                                                                                                                                                                 1             
                                                                                                                                                                                                                                                   6 610              
                                                                                                                                                                                                                                                                          6 034             




Energy marketing and trading
   activities                              
                                                  —              
                                                                     —             
                                                                                       —             
                                                                                                         —             
                                                                                                                          585            
                                                                                                                                             316              
                                                                                                                                                                   —              
                                                                                                                                                                                       —              
                                                                                                                                                                                                           —              
                                                                                                                                                                                                                               (8 )                  585              
                                                                                                                                                                                                                                                                           308              




Net insurance proceeds (note 12)           
                                                 387             
                                                                     —             
                                                                                       —             
                                                                                                         —             
                                                                                                                           —             
                                                                                                                                              —               
                                                                                                                                                                   —              
                                                                                                                                                                                       —              
                                                                                                                                                                                                           —              
                                                                                                                                                                                                                               —               
                                                                                                                                                                                                                                                     387              
                                                                                                                                                                                                                                                                            —               




Intersegment revenues                      
                                                 316             
                                                                    302            
                                                                                       19            
                                                                                                         63            
                                                                                                                           —             
                                                                                                                                              —               
                                                                                                                                                                   —              
                                                                                                                                                                                       —              
                                                                                                                                                                                                         (335 )              (365 )                   —               
                                                                                                                                                                                                                                                                            —               




Interest                                   
                                                  —              
                                                                     —             
                                                                                       —             
                                                                                                         —             
                                                                                                                           —             
                                                                                                                                              —               
                                                                                                                                                                    1             
                                                                                                                                                                                       1              
                                                                                                                                                                                                           —              
                                                                                                                                                                                                                                1              
                                                                                                                                                                                                                                                       1              
                                                                                                                                                                                                                                                                             2              
     




                                               2 339                  2                                                     3                                       1
                                                                 
                                                                    652            
                                                                                      448            
                                                                                                        421            
                                                                                                                          219            
                                                                                                                                            2 543             
                                                                                                                                                                  911             
                                                                                                                                                                                     1 099            
                                                                                                                                                                                                         (334 )              (371 )                7 583              
                                                                                                                                                                                                                                                                          6 344             




Expenses                                                                                                                                                                                                                                                                                    




Purchases of crude oil and products                                                                                         1                                       1
                                           
                                                 29              
                                                                     75            
                                                                                       —             
                                                                                                         —             
                                                                                                                          959            
                                                                                                                                            1 544             
                                                                                                                                                                  513             
                                                                                                                                                                                      859             
                                                                                                                                                                                                         (335 )              (364 )                3 166              
                                                                                                                                                                                                                                                                          2 114             




Operating, selling and general             
                                                733              
                                                                    657            
                                                                                       69            
                                                                                                         61            
                                                                                                                          339            
                                                                                                                                              297             
                                                                                                                                                                  119             
                                                                                                                                                                                       94             
                                                                                                                                                                                                          202             
                                                                                                                                                                                                                              132              
                                                                                                                                                                                                                                                   1 462              
                                                                                                                                                                                                                                                                          1 241             




Energy marketing and trading
   activities                              
                                                  —              
                                                                     —             
                                                                                       —             
                                                                                                         —             
                                                                                                                          573            
                                                                                                                                             303              
                                                                                                                                                                   —              
                                                                                                                                                                                       —              
                                                                                                                                                                                                           —              
                                                                                                                                                                                                                               (8 )                  573              
                                                                                                                                                                                                                                                                           295              




Transportation and other costs             
                                                  68             
                                                                     63            
                                                                                       16            
                                                                                                         16            
                                                                                                                            4            
                                                                                                                                               2              
                                                                                                                                                                   14             
                                                                                                                                                                                       15             
                                                                                                                                                                                                           —              
                                                                                                                                                                                                                               —               
                                                                                                                                                                                                                                                     102              
                                                                                                                                                                                                                                                                            96              




Depreciation, depletion and
   amortization                            
                                                329              
                                                                    377            
                                                                                       97            
                                                                                                         86            
                                                                                                                           54            
                                                                                                                                              51              
                                                                                                                                                                   18             
                                                                                                                                                                                       16             
                                                                                                                                                                                                            9             
                                                                                                                                                                                                                                 6             
                                                                                                                                                                                                                                                     507              
                                                                                                                                                                                                                                                                           536              




Accretion of asset retirement
   obligations                             
                                                  18      15 
                                                                4
                                                                 
                                                                       3       
                                                                               1                                                         
                                                                                                                                                1   —                             
                                                                                                                                                                                       —              
                                                                                                                                                                                                           —              
                                                                                                                                                                                                                               —               
                                                                                                                                                                                                                                                      23              
                                                                                                                                                                                                                                                                            19              




Exploration                                
                                                  10      15 
                                                               38
                                                                 
                                                                      33      —
                                                                                                                                         
                                                                                                                                               —    —                             
                                                                                                                                                                                       —              
                                                                                                                                                                                                           —              
                                                                                                                                                                                                                               —               
                                                                                                                                                                                                                                                      48              
                                                                                                                                                                                                                                                                            48              




Royalties                                  
                                                 317     289 
                                                               93
                                                                 
                                                                      92      —
                                                                                                                                         
                                                                                                                                               —    —                             
                                                                                                                                                                                       —              
                                                                                                                                                                                                           —              
                                                                                                                                                                                                                               —               
                                                                                                                                                                                                                                                     410              
                                                                                                                                                                                                                                                                           381              




Taxes other than income taxes              
                                                  34      54 
                                                                2
                                                                 
                                                                       2     258
                                                                                                                                         
                                                                                                                                              260 112                             
                                                                                                                                                                                       88             
                                                                                                                                                                                                           —              
                                                                                                                                                                                                                               —               
                                                                                                                                                                                                                                                     406              
                                                                                                                                                                                                                                                                           404              




Loss (gain) on disposal of assets          
                                                  —        7 
                                                               — 
                                                                      (3 )    (1 )
                                                                                                     
                                                                                                                                               (1 ) —                             
                                                                                                                                                                                       —              
                                                                                                                                                                                                           —              
                                                                                                                                                                                                                               —               
                                                                                                                                                                                                                                                      (1 )                   3              




Project start-up costs                     
                                                  13      23 
                                                               — 
                                                                      —       —
                                                                                                                                         
                                                                                                                                               —    —                             
                                                                                                                                                                                       —              
                                                                                                                                                                                                           —              
                                                                                                                                                                                                                               —               
                                                                                                                                                                                                                                                      13              
                                                                                                                                                                                                                                                                            23              




Financing expenses
     
                                           
                                                  —       —  
                                                               — 
                                                                      —       —
                                                                                                                                         
                                                                                                                                               —    —                             
                                                                                                                                                                                       —              
                                                                                                                                                                                                          (30 )                65              
                                                                                                                                                                                                                                                     (30 )                  65              




                                               1 551       1                   3                                                                    1
                                           
                                                         575 319 290 187
                                                                                                                                         
                                                                                                                                            2 457 776                             
                                                                                                                                                                                     1 072            
                                                                                                                                                                                                         (154 )              (169 )                6 679              
                                                                                                                                                                                                                                                                          5 225             




Earnings (loss) before income                              1
   taxes                                   
                                                 788 077 129 131
                                                                 
                                                                              32
                                                                                                                                         
                                                                                                                                               86 135                             
                                                                                                                                                                                       27 (180 )      
                                                                                                                                                                                                                             (202 )                  904              
                                                                                                                                                                                                                                                                          1 119             




Income taxes                               
                                                (301 ) (344 ) (52 ) (51 ) (13 )                                                               (30 ) (48 )                              (3 ) 61                            
                                                                                                                                                                                                                               64              
                                                                                                                                                                                                                                                    (353 )                 (364 )
Net earnings (loss)                        
                                                 487 733     
                                                               77
                                                                 
                                                                      80      19
                                                                                                                                         
                                                                                                                                               56     87                          
                                                                                                                                                                                       24 (119 )      
                                                                                                                                                                                                                             (138 )                  551              
                                                                                                                                                                                                                                                                            755             




                                                                                                                                                                                                                                                                                 
                                  




As at September 30                                                                                                                                                                                                                                                                          




TOTAL ASSETS                                                          8                 1                                   1                                       1
                                           
                                              10 990             
                                                                    744            
                                                                                      159            
                                                                                                        819            
                                                                                                                          880            
                                                                                                                                            1 274             
                                                                                                                                                                  239             
                                                                                                                                                                                      549             
                                                                                                                                                                                                         (720 )                14              
                                                                                                                                                                                                                                                  14 548              
                                                                                                                                                                                                                                                                         11 400             




  
                                                                                                                 
                                                                                                              22
(unaudited)
  
                                                  
                                                                                                       Nine months ended September 30                                                                                                                                                                  




                                                                                Energy
                                                                              Marketing     Refining and    Corporate
                                                                             and Refining Marketing —          and
                                              
                                                Oil Sands
                                                  
                                                              Natural Gas     —Canada       
                                                                                               U.S.A.      Eliminations        Total
                                                                                                                                                                                                                                                                                                       




($millions)                                   
                                               2005
                                                  
                                                       2004 2005 2004 2005 2004 2005 2004 2005
                                                                                                                
                                                                                                                    2004    2005  
                                                                                                                                    2004
                                                                                                                                                                                                                                                                                                       




                                                                                                                                           
CASH FLOW BEFORE FINANCING
   ACTIVITIES                                                                                                                                                                                                                                                                                          




Cash flow from (used in) operating
   activities:                                                                                                                                                                                                                                                                                         




   Cash flow from (used in) operations                                                                                                                                                                                                                                                                 




   Net earnings (loss)                            
                                                       487              
                                                                            733             
                                                                                                 77             
                                                                                                                     80               
                                                                                                                                           19             
                                                                                                                                                               56             
                                                                                                                                                                                   87             
                                                                                                                                                                                                       24             
                                                                                                                                                                                                                         (119 )              (138 )               551              
                                                                                                                                                                                                                                                                                       755             




   Exploration expenses                           
                                                        —               
                                                                             —              
                                                                                                 38             
                                                                                                                     33               
                                                                                                                                           —              
                                                                                                                                                               —              
                                                                                                                                                                                   —              
                                                                                                                                                                                                       —              
                                                                                                                                                                                                                           —              
                                                                                                                                                                                                                                               —              
                                                                                                                                                                                                                                                                   38              
                                                                                                                                                                                                                                                                                        33             




   Non-cash items included in earnings                                                                                                                                                                                                                                                                 




      Depreciation, depletion and
         amortization                             
                                                       329              
                                                                            377             
                                                                                                 97             
                                                                                                                     86               
                                                                                                                                           54             
                                                                                                                                                               51             
                                                                                                                                                                                   18             
                                                                                                                                                                                                       16             
                                                                                                                                                                                                                            9             
                                                                                                                                                                                                                                                6             
                                                                                                                                                                                                                                                                  507              
                                                                                                                                                                                                                                                                                       536             




      Income taxes                                
                                                       301              
                                                                            344             
                                                                                                 52             
                                                                                                                     51               
                                                                                                                                           13             
                                                                                                                                                               30             
                                                                                                                                                                                   48             
                                                                                                                                                                                                        3             
                                                                                                                                                                                                                          (98 )              (107 )               316              
                                                                                                                                                                                                                                                                                       321             




      Loss (gain) on disposal of assets           
                                                        —               
                                                                              7             
                                                                                                 —              
                                                                                                                     (3 )                  (1 )                (1 )                —              
                                                                                                                                                                                                       —              
                                                                                                                                                                                                                           —              
                                                                                                                                                                                                                                               —              
                                                                                                                                                                                                                                                                   (1 )                  3             




      Stock-based compensation
         expense                                  
                                                        —               
                                                                             —              
                                                                                                 —              
                                                                                                                     —                
                                                                                                                                           —              
                                                                                                                                                               —              
                                                                                                                                                                                   —              
                                                                                                                                                                                                       —              
                                                                                                                                                                                                                           16             
                                                                                                                                                                                                                                               19             
                                                                                                                                                                                                                                                                   16              
                                                                                                                                                                                                                                                                                        19             




      Other                                       
                                                        25              
                                                                            (13 )                4              
                                                                                                                     6                
                                                                                                                                           7              
                                                                                                                                                               (5 )                (1 )                (9 )               (54 )               (19 )               (19 )                (40 )
   Overburden removal outlays                     
                                                      (220 )               (163 )                —              
                                                                                                                     —                
                                                                                                                                           —              
                                                                                                                                                               —              
                                                                                                                                                                                   —              
                                                                                                                                                                                                       —              
                                                                                                                                                                                                                           —              
                                                                                                                                                                                                                                               —              
                                                                                                                                                                                                                                                                 (220 )               (163 )
   Increase (decrease) in deferred credits
      and other                                   
                                                        (10 )                10             
                                                                                                 —              
                                                                                                                     —                
                                                                                                                                           —              
                                                                                                                                                               —              
                                                                                                                                                                                   —              
                                                                                                                                                                                                        2             
                                                                                                                                                                                                                           72             
                                                                                                                                                                                                                                               13             
                                                                                                                                                                                                                                                                   62              
                                                                                                                                                                                                                                                                                        25             




Total cash flow from (used in)
   operations                                     
                                                       912              
                                                                           1 295            
                                                                                               268              
                                                                                                                   253                
                                                                                                                                           92             
                                                                                                                                                             131              
                                                                                                                                                                                 152              
                                                                                                                                                                                                       36             
                                                                                                                                                                                                                         (174 )              (226 )              1 250             
                                                                                                                                                                                                                                                                                      1 489            




Decrease (increase) in operating
   working capital                                
                                                      (110 )                 26             
                                                                                                (41 )               (11 )                 (11 )                —              
                                                                                                                                                                                   74             
                                                                                                                                                                                                       38             
                                                                                                                                                                                                                           48             
                                                                                                                                                                                                                                               12             
                                                                                                                                                                                                                                                                   (40 )                65             




Total cash flow from (used in) operating
   activities                                     
                                                       802              
                                                                           1 321            
                                                                                               227              
                                                                                                                   242                
                                                                                                                                           81             
                                                                                                                                                             131              
                                                                                                                                                                                 226              
                                                                                                                                                                                                       74             
                                                                                                                                                                                                                         (126 )              (214 )              1 210             
                                                                                                                                                                                                                                                                                      1 554            




Cash from (used in) investing
   activities:                                                                                                                                                                                                                                                                                         




Capital and exploration expenditures              
                                                     (1 443 )              (779 )              (241 )              (160 )                (306 )              (132 )              (258 )               (97 )               (41 )               (25 ) (2 289 ) (1 193 )
Acquisition of Denver refinery and
   related assets                                 
                                                         —              
                                                                             —              
                                                                                                 —              
                                                                                                                     —                
                                                                                                                                           —              
                                                                                                                                                               —              
                                                                                                                                                                                  (62 )                —              
                                                                                                                                                                                                                           —              
                                                                                                                                                                                                                                               —              
                                                                                                                                                                                                                                                                   (62 )                —              




Proceeds from property loss                       
                                                         44             
                                                                             —              
                                                                                                 —              
                                                                                                                     —                
                                                                                                                                           —              
                                                                                                                                                               —              
                                                                                                                                                                                   —              
                                                                                                                                                                                                       —              
                                                                                                                                                                                                                           —              
                                                                                                                                                                                                                                               —              
                                                                                                                                                                                                                                                                    44             
                                                                                                                                                                                                                                                                                        —              




Deferred maintenance shutdown
   expenditures                                   
                                                        (64 )                (1 )                (3 )                —                
                                                                                                                                           —              
                                                                                                                                                              (21 )                (4 )                (7 )                —              
                                                                                                                                                                                                                                               —       (71 )
                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                (29 )
Deferred outlays and other investments            
                                                         (1 )                (3 )                —              
                                                                                                                     —                
                                                                                                                                           (1 )               (12 )                —              
                                                                                                                                                                                                       —              
                                                                                                                                                                                                                            1             
                                                                                                                                                                                                                                                8       (1 )
                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                 (7 )
Proceeds from disposals                           
                                                         21             
                                                                             42             
                                                                                                  2             
                                                                                                                     10               
                                                                                                                                            2             
                                                                                                                                                                2             
                                                                                                                                                                                   —              
                                                                                                                                                                                                       —              
                                                                                                                                                                                                                           —              
                                                                                                                                                                                                                                               —        25
                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                 54                                    




Total cash (used in) investing activities         
                                                     (1 443 )              (741 )              (242 )              (150 )                (305 )              (163 )              (324 )              (104 )               (40 )               (17 ) (2 354 ) (1 175 )
Net cash surplus (deficiency) before
   financing activities                           
                                                      (641 )                580             
                                                                                                (15 )                92               
                                                                                                                                         (224 )               (32 )               (98 )               (30 )              (166 )              (231 ) (1 144 )                           379             




  
                                                                                                                      
                                                                                                                   23
                                                            
notes to the consolidated financial statements
(unaudited)
  
1. ACCOUNTING POLICIES
  
These interim consolidated financial statements have been prepared in accordance with Canadian generally
accepted accounting principles and follow the same accounting policies and methods of computation as, and
should be read in conjunction with, the most recent annual financial statements, except for the accounting policy
changes as described in note 2, Changes in Accounting Policies.
  
In the opinion of management, these interim consolidated financial statements contain all adjustments of a normal
and recurring nature necessary to present fairly Suncor Energy Inc.’s (Suncor) financial position at September 30,
2005 and the results of its operations and cash flows for the three and nine month periods ended September 30,
2005 and 2004.
  
Certain prior period comparative figures have been reclassified to conform to the current period presentation.
  
2. CHANGES IN ACCOUNTING POLICIES
  
(a) Preferred Securities
  
On January 1, 2005 the company retroactively adopted the Canadian accounting standard related to disclosure
and presentation of financial instruments. Accordingly, the company’s preferred securities, which were redeemed
in March, 2004, have been reclassified as long-term debt. The company has also restated its property, plant and
equipment and depreciation, depletion and amortization to reflect the capitalized interest that would have been
incurred and amortized had the preferred securities been classified as debt during the period in which they were
outstanding. The impact of adopting this accounting standard is as follows:
  
Change in Consolidated Balance Sheets
  
                                                                                                
                                                                                                   As at September 30             




($ millions, increase)                                                                          
                                                                                                   2005         2004
                                                                                                                                  




Property, plant and equipment                                                                   
                                                                                                       36             
                                                                                                                         38       




Total assets                                                                                    
                                                                                                       36             
                                                                                                                         38       




                                                                                                                               
Future income tax liabilities                                                                   
                                                                                                       13             
                                                                                                                         14       




Retained earnings                                                                               
                                                                                                       23             
                                                                                                                         24       




Total liabilities and shareholders’ equity                                                      
                                                                                                       36             
                                                                                                                         38       




  
Change in Consolidated Statements of Earnings
  
                                                                                          Nine months ended September
                                                         
                                                               Third quarter           
                                                                                                       30                                 




($ millions, increase/(decrease))                        
                                                            2005         
                                                                           2004        
                                                                                             2005             
                                                                                                              2004                        




Depreciation, depletion and amortization                 
                                                                 —       
                                                                              —        
                                                                                               1              
                                                                                                                2                         




Financing expenses                                       
                                                                 —       
                                                                              —        
                                                                                             —                
                                                                                                              15                          




Future income taxes                                      
                                                                 —       
                                                                              —        
                                                                                             —                
                                                                                                               (5 )
Net earnings                                             
                                                                 —       
                                                                              —        
                                                                                              (1 )           (12 )
Per common share — basic (dollars)                       
                                                                 —       
                                                                              —        
                                                                                             —                
                                                                                                              —                           




Per common share — diluted (dollars)                     
                                                                 —       
                                                                              —        
                                                                                             —                
                                                                                                              —                           




  
(b) Consolidation of Variable Interest Entities
  
On January 1, 2005 the company prospectively adopted Canadian Accounting Guideline 15 — “Consolidation
of Variable Interest Entities (VIEs)”. Accordingly, the company has consolidated the VIE related to the sale of
equipment as described in note 11(c) of the company’s 2004 Annual Report. The impact of adopting this
standard was an increase to property, plant and equipment of $14 million, an increase to materials and supplies
inventory of $8 million and an increase to long-term debt of $22 million.
  
        
     24
3. ENERGY MARKETING AND TRADING ACTIVITIES
  
The company uses physical and financial energy contracts, including swaps, forwards and options to gain market
information and earn trading and marketing revenues. The results of these activities are reported as revenue and
as energy trading and marketing expenses in the Consolidated Statement of Earnings.
  
Physical energy marketing contracts involve activities intended to enhance prices and satisfy physical deliveries to
customers. For the quarter ended September 30, 2005 these activities resulted in a net pretax gain of $1 million
(2004 — pretax gain of $2 million). For the nine months ended September 30, 2005 physical energy marketing
contracts resulted in a net pretax gain of $10 million (2004 — pretax gain of $7 million).
  
In addition to the financial derivatives used for hedging activities, the company also enters into various financial
energy contracts for trading activities. The following information presents all positions for the financial instruments
only. These energy trading activities are accounted for using the mark-to-market method and as such all financial
instruments are recorded at fair value at each balance sheet date. For the quarter ended September 30, 2005, a
net pretax gain of $3 million (2004 — pretax gain of $3 million) resulted from the settlement and revaluation of
the financial energy contracts. For the nine months ended September 30, 2005 a net pretax gain of $4 million
(2004 — pretax gain of $9 million) was recorded. The above amounts do not include the impact of related
general and administrative costs.
  
The fair value of unsettled (unrealized) energy trading assets and liabilities are as follows:
  
                                                                    
                                                                                   September 30                                      
                                                                                                                                                              December 31                                   




($ millions)                                                        
                                                                                       2005                                          
                                                                                                                                                                 2004                                       




Energy trading assets                                               
                                                                          114                             26                                                                                                




Energy trading liabilities                                          
                                                                          101                              9                                                                                                




  
The source of the valuations of the above contracts is based on actively quoted prices and internal model
valuations.
  
4. FINANCING EXPENSES (INCOME)
  
                                                                                                                                                          Nine months ended
                                                            
                                                                                Third Quarter                                
                                                                                                                                                             September 30                                               




($ millions)                                                
                                                                       2005               
                                                                                                                 2004        
                                                                                                                                                        2005           
                                                                                                                                                                          2004                                          




Interest on debt                      39        36      
                                                        110                                                                                                            
                                                                                                                                                                                           121                          




Capitalized interest                 (34 )     (17 )    
                                                         (91 )
                                                            
                                                                                                                                                                                           (40 )
Net interest expense                   5        19      
                                                          19
                                                                                                                                                                       
                                                                                                                                                                                            81                          




Foreign exchange (gain) on long-term
debt                                 (64 )     (77 )    
                                                         (42 )
                                                            
                                                                                                                                                                                           (22 )
Other foreign exchange (gain) loss     1        11      
                                                          (7 )
                                                                                                                             
                                                                                                                                                                                             6                          




Total financing expenses (income)    (58 )     (47 )    
                                                         (30 )
                                                            
                                                                                                                                                                                            65                          




  
5. RECONCILIATION OF BASIC AND DILUTED EARNINGS PER COMMON SHARE
  
                                                                                                                                                           Nine months ended
                                                                             
                                                                                      Third Quarter                                                  
                                                                                                                                                              September 30                                      




($ millions)                                                                 
                                                                                   2005           2004                                               
                                                                                                                                                          2005            2004                                  




Net earnings                                                                 
                                                                                             341              
                                                                                                                        337                          
                                                                                                                                                               551                     
                                                                                                                                                                                          755                   




                                                    
                                                                                                                                                                                                 
(millions of common shares)                                                                                                                                                                                     




Weighted-average number of common shares                                     
                                                                                             457              
                                                                                                                        453                          
                                                                                                                                                               456                     
                                                                                                                                                                                          453                   




Options issued under stock-based compensation
plans                                                                        
                                                                                              11              
                                                                                                                                        7            
                                                                                                                                                                  9                    
                                                                                                                                                                                             9                  




Weighted-average number of diluted common
shares                                                                       
                                                                                             468              
                                                                                                                        460                          
                                                                                                                                                               465                     
                                                                                                                                                                                          462                   




                                                
                                                    
                                                                                                                                                                                                 
(dollars per common share)                                                                                                                                                                                      




Basic earnings per share (b)                                                 
                                                                                             0.75             
                                                                                                                        0.74                         
                                                                                                                                                              1.21                     
                                                                                                                                                                                          1.67                  




Diluted earnings per share (c)                                               
                                                                                             0.73             
                                                                                                                        0.73                         
                                                                                                                                                              1.18                     
                                                                                                                                                                                          1.64 (a)
  
Note: An option will have a dilutive effect under the treasury stock method only when the average market price of
the common stock during the period exceeds the exercise price of the option.

(a) For the nine months ended September 30, 2004, diluted earnings per share is net earnings divided by the
weighted-average number of diluted common shares. Interest on subordinated debentures, the revaluation of
US$ subordinated debentures and the redemption of subordinated debentures by the issuance of common shares
have an anti-dilutive impact, therefore they are not included in the calculation of diluted earnings per share.
  
(b) Basic earnings per share is net earnings divided by the weighted-average number of common shares.
  
(c) Diluted earnings per share is the net earnings, divided by the weighted-average number of diluted common
shares.
                                                             
                                                          25
                                                            
6. STOCK-BASED COMPENSATION
  
A common share option gives the holder the right, but not the obligation, to purchase common shares at
a predetermined price over a specified period of time.
  
After the date of grant, employees that hold options must earn the right to exercise them. This is done by
the employee fulfilling a time requirement for service to the company, and with respect to certain options,
is subject to accelerated vesting should the company meet predetermined performance criteria. Once this
right has been earned, these options are considered vested.
  
The predetermined price at which an option can be exercised is equal to or greater than the market price
of the common shares on the date the option is granted.
  
A performance vesting share unit is an award entitling employees to receive cash to varying degrees
contingent upon Suncor’s shareholder return relative to a peer group of companies.
  
(a) Stock Option Plans
  
Under the SunShare long-term incentive plan, the company granted 314,000 options to new employees in the
third quarter of 2005, for a total of 991,000 options granted in the nine months ended September 30, 2005
(256,000 options granted during the third quarter of 2004; 1,452,000 options granted in the nine months ended
September 30, 2004).
  
On January 31, 2005, in connection with the achievement of a predetermined performance criterion, 2,062,000
SunShare options vested, representing approximately 25% of the then outstanding unvested options under the
SunShare plan. On June 30, 2005, we met an additional predetermined performance criterion under the
SunShare plan, resulting in the vesting of 50% of the outstanding, unvested SunShare options on April 30, 2008.
As we had been accruing the costs of these options, the impact on net earnings for the third quarter and the nine
months ended September 30, 2005 was not significant.
  
Under the company’s other plans, 63,000 options were granted in the third quarter of 2005, for a total of
1,418,000 options granted in the nine months ended September 30, 2005 (1,000 options granted during the third
quarter of 2004; 1,285,000 granted in the nine months ended September 30, 2004).
  
The fair values of all common share options granted during the period are estimated as at the grant date using the
Black-Scholes option-pricing model. The weighted-average fair values of the options granted during the various
periods and the weighted-average assumptions used in their determination are as noted below:
  
                                                                                           Nine months ended
                                           
                                                     Third Quarter                   
                                                                                             September 30                  




                                           
                                              2005             
                                                                     2004            
                                                                                        2005            
                                                                                                           2004            




Quarterly dividend per share               
                                                 $0.06         
                                                                        $0.06        
                                                                                           $0.06        
                                                                                                             $0.06*        




Risk-free interest rate                    
                                                  3.42 %                  4.12 %            3.68 %              3.76 %
Expected life                              
                                               5 years         
                                                                       6 years       
                                                                                         6 years        
                                                                                                             6 years       




Expected volatility                        
                                                    28 %                    29 %              28 %                29 %
Weighted-average fair value per
option                                     
                                                $19.17         
                                                                       $12.50        
                                                                                          $14.89        
                                                                                                             $11.84        




* In 2004, quarterly dividends of $0.05 per share were paid in the first quarter and $0.06 per share were paid in
the second and third quarter.
  
Stock-based compensation expense recognized in the third quarter of 2005 related to stock options plans was
$6 million (2004 — $10 million). For the nine months ended September 30, 2005 stock-based compensation
expense recognized was $16 million (2004 — $19 million).
  
Common share options granted prior to January 1, 2003 are not recognized as compensation expense in the
Consolidated Statements of Earnings. The company’s reported net earnings attributable to common shareholders
and earnings per share prepared in accordance with the fair value method of accounting for stock-based
compensation would have been reduced for all common share options granted prior to 2003 to the pro forma
amounts stated below:
  
                                                                                                                   Nine months ended
                                                                        
                                                                            Third Quarter                       
                                                                                                                     September 30                         




($ millions, except per share amounts)                                  
                                                                           2005      2004
                                                                                                                
                                                                                                                    2005       2004
                                                                                                                                                          




Net earnings — as reported                                              
                                                                            341              
                                                                                                337             
                                                                                                                      551              
                                                                                                                                          755             




Less: compensation cost under the fair value method for pre-2003
options                                                                 
                                                                              2              
                                                                                                 20             
                                                                                                                       11              
                                                                                                                                           41             




Pro forma net earnings                                                  
                                                                            339              
                                                                                                317             
                                                                                                                      540              
                                                                                                                                          714             




Basic earnings per share                                                                                                                                  




  As reported                                                           
                                                                            0.75             
                                                                                                0.74            
                                                                                                                      1.21             
                                                                                                                                          1.67            




  Pro forma                                                             
                                                                            0.74             
                                                                                                0.70            
                                                                                                                      1.18             
                                                                                                                                          1.58            




Diluted earnings per share                                                                                                                                




  As reported                                                           
                                                                            0.73             
                                                                                                0.73            
                                                                                                                      1.18             
                                                                                                                                          1.64            




  Pro forma                                                             
                                                                            0.73             
                                                                                                0.69            
                                                                                                                      1.16             
                                                                                                                                          1.55            




                                                         
                                                      26
                                                         
(b) Performance Share Units (PSUs)
  
In the third quarter of 2005 the company issued 6,000 PSUs (2004 — Nil). For the nine months ended
September 30, 2005, the company issued 451,000 PSUs (2004 — 353,000). Expense recognized in the third
quarter of 2005 was $8 million (2004 — $1 million). Expense recognized for the nine months ended September
30, 2005 was $16 million (2004 — $3 million).
  
7. EMPLOYEE FUTURE BENEFITS LIABILITY
  
The company’s pension plans and other post-retirement benefits programs are described in note 9 of the
company’s 2004 Annual Report. The following is the status of the net periodic benefit cost for the nine months
ended September 30.
  
                                                                                    
                                                                                                                                                                         Pension Benefits                                                                                                           




                                                                                                                                                                                                                        Nine months ended
                                                                                    
                                                                                                                    Third quarter                                                                    
                                                                                                                                                                                                                           September 30                                                             




                                                                                    
                                                                                                             2005                             
                                                                                                                                                                   2004                              
                                                                                                                                                                                                                      2005              2004                                                        




Current service costs                                                               
                                                                                                                              8               
                                                                                                                                                                             6                       
                                                                                                                                                                                                                            24                           
                                                                                                                                                                                                                                                                                     18             




Interest costs                                                                      
                                                                                                                             10               
                                                                                                                                                                             8                       
                                                                                                                                                                                                                            29                           
                                                                                                                                                                                                                                                                                     25             




Expected return on plan assets                                                      
                                                                                                                             (7 )                                           (6 )                                           (21 )                                                    (18 )
Amortization of net actuarial loss                                                  
                                                                                                                              4               
                                                                                                                                                                             5                       
                                                                                                                                                                                                                            15                           
                                                                                                                                                                                                                                                                                     14             




Net periodic benefit cost                                                           
                                                                                                                             15               
                                                                                                                                                                            13                       
                                                                                                                                                                                                                            47                           
                                                                                                                                                                                                                                                                                     39             




  
                                                                                                    
                                                                                                                             Other Post-retirement Benefits                                                                                                                                                 




                                                                                                                                                     Nine months ended
                                                                                                    
                                                                                                                   Third quarter                        September 30                                                                                                                                        




                                                                                                    
                                                                                                              2005               2004              2005
                                                                                                                                                          
                                                                                                                                                                     2004                                                                                                                                   




Current service costs                                                                               
                                                                                                                                         2                
                                                                                                                                                                                         1                       
                                                                                                                                                                                                                                     5                               
                                                                                                                                                                                                                                                                                       4                    




Interest costs                                                                                      
                                                                                                                                         1                
                                                                                                                                                                                         2                       
                                                                                                                                                                                                                                     5                               
                                                                                                                                                                                                                                                                                       5                    




Amortization of net actuarial loss                                                                  
                                                                                                                                         1                
                                                                                                                                                                                        —                        
                                                                                                                                                                                                                                     1                               
                                                                                                                                                                                                                                                                                       1                    




Net periodic benefit cost                                                                           
                                                                                                                                         4                
                                                                                                                                                                                         3                       
                                                                                                                                                                                                                                    11                               
                                                                                                                                                                                                                                                                                      10                    




  
8. SUPPLEMENTAL INFORMATION
  
                                                                                                                                                                                                                        Nine months ended
                                                                                            
                                                                                                                    Third quarter                                                                        
                                                                                                                                                                                                                           September 30                                                             




($ millions)                                                                                
                                                                                                             2005                                 
                                                                                                                                                                   2004                                  
                                                                                                                                                                                                                      2005              2004                                                        




Interest paid                                   53                                                                                                
                                                                                                                                                                            47                           
                                                                                                                                                                                                                           122                               
                                                                                                                                                                                                                                                                                    125             




Income taxes paid                                6                                                                                                
                                                                                                                                                                             6                           
                                                                                                                                                                                                                            61                               
                                                                                                                                                                                                                                                                                     38             




  
Strategic Crude Oil Hedges at September 30, 2005
  
                                                                            
                                                                                                       Quantity                   
                                                                                                                                                     Average Price                       
                                                                                                                                                                                                            Revenue Hedged                   
                                                                                                                                                                                                                                                                          Hedge                     




                                                                                                                                                                                                            (Cdn$ millions)
                                                                            
                                                                                                       (bbl/day)                  
                                                                                                                                                             (US$/bbl)(a)                
                                                                                                                                                                                                                  (b)                        
                                                                                                                                                                                                                                                                        Period(c)                   




Swaps                                                                       
                                                                                                            36 000                
                                                                                                                                                                    22.77                
                                                                                                                                                                                                                           88                
                                                                                                                                                                                                                                                                                 2005               




Costless collars                                                                                                                                                 50.00 —
                                                                            
                                                                                                             7 000                
                                                                                                                                                                    92.57                
                                                                                                                                                                                                                    148 — 275                
                                                                                                                                                                                                                                                                                 2006               




Costless collars                                                                                                                                                 50.00 —
                                                                            
                                                                                                             7 000                
                                                                                                                                                                    92.57                
                                                                                                                                                                                                                    148 — 275                
                                                                                                                                                                                                                                                                                 2007               




  
Margin Hedges at September 30, 2005
  
                                                                    
                                                                                               Quantity                   
                                                                                                                                     Average Margin                              
                                                                                                                                                                                                        Margin Hedged                
                                                                                                                                                                                                                                                                         Hedge              




                                                                                                                                                                                                        (Cdn$ millions)
                                                                    
                                                                                               (bbl/day)                  
                                                                                                                                                             (US$/bbl)           
                                                                                                                                                                                                              (b)                    
                                                                                                                                                                                                                                                                        Period(c)           




Refined product and crude swaps                                     
                                                                                                           12 700         
                                                                                                                                                                    7.77         
                                                                                                                                                                                                                           11        
                                                                                                                                                                                                                                                                               2005 (d)
Refined product and crude swaps                                     
                                                                                                            5 000         
                                                                                                                                                                   11.67         
                                                                                                                                                                                                                           10        
                                                                                                                                                                                                                                                                               2006 (e)
                                                                                                                             
                                                                                                                          27
Natural Gas Hedges at September 30, 2005
  
                                                                     
                                                                        Quantity           
                                                                                               Average Price        
                                                                                                                       Revenue Hedged          
                                                                                                                                                   Hedge            




Revenue                                                              
                                                                        (GJ/day)           
                                                                                                (Cdn$/GJ)           
                                                                                                                       (Cdn$ millions)         
                                                                                                                                                  Period (c)        




Costless collars                                                     
                                                                             25 000        
                                                                                                6.91 — 8.11         
                                                                                                                               5—6             
                                                                                                                                                          2005 (f)
Swaps                                                                
                                                                              4 000        
                                                                                                       6.99         
                                                                                                                                   3           
                                                                                                                                                          2005      




Costless collars                                                     
                                                                             25 000        
                                                                                              10.76 — 16.13         
                                                                                                                             16 — 25           
                                                                                                                                                          2005 (g)
Swaps                                                                
                                                                              4 000        
                                                                                                       6.58         
                                                                                                                                  10           
                                                                                                                                                          2006      




Costless collars                                                     
                                                                             25 000        
                                                                                              10.76 — 16.13         
                                                                                                                             24 — 36           
                                                                                                                                                          2006 (h)
Swaps                                                                
                                                                              4 000        
                                                                                                       6.11         
                                                                                                                                   9           
                                                                                                                                                          2007      




(a)                                       Average price for crude oil swaps is WTI per barrel at Cushing, Oklahoma.
  
(b)                               The revenue and margin hedged is translated to Cdn$ at the September 30, 2005 exchange rate and is
                                        



                                 subject to change as the Cdn$/US$ exchange rate fluctuates during the hedge period.
  
(c)       Original hedge term is for the full year unless otherwise noted.
                                        



  
(d)       For the period October to December 2005, inclusive.
                                        



  
(e)       For the period January to May 2006, inclusive.
                                        



  
(f)       For the period October 2005.
                                       



  
(g)       For the period November to December 2005, inclusive.
                                       



  
(h)       For the period January to March 2006, inclusive.
                                       



  
9. ROYALTY ESTIMATE MEASUREMENT UNCERTAINTY
  
Alberta Crown royalties in effect for each Oil Sands project require payments to the Government of Alberta
based on annual gross revenues less related transportation costs (R) less allowable costs (C), including the
deduction of certain capital expenditures (the 25% R-C royalty), subject to a minimum payment of 1% of R.
Firebag is being treated by the government of Alberta as a separate project from the rest of the Oil Sands
operations for royalty purposes. The 2004 calendar year was a transitional year for Oil Sands as the remaining
amount of prior years’ allowable costs carried forward of approximately $600 million were claimed before the
25% R-C royalty applied to 2004 results.
  
Absolute royalties that may be payable in 2005 are highly sensitive to, among other factors, changes in crude oil
and natural gas pricing, timing of the receipt of business interruption insurance proceeds, foreign exchange rates
and total capital and operating costs for each project. Oil Sands pretax Crown royalty estimate was $317 million
($196 million after-tax) for the first nine months of 2005 ($186 million after-tax in 2004). The annualized estimate
of $546 million ($349 million after-tax) was based on nine months of actual results, together with 2005 forward
crude oil pricing as at September 30, 2005, current forecasts of capital and operating costs for the remainder of
2005, a Canadian/US foreign exchange rate of $0.83, and no receipts of business interruption insurance
proceeds other than those recorded to date (see note 12). Accordingly, actual results will differ, and these
differences may be material.
  
10. ACQUISITION OF REFINERY AND RELATED ASSETS
  
On May 31, 2005, the company acquired all of the issued shares of the Colorado Refining Company, an indirect
wholly-owned subsidiary of Valero for cash consideration of $37 million. Additional payments for working
capital and associated inventory brought the total purchase price to $62 million. The acquired company’s
principal assets are a Denver refinery and a products terminal located in Grand Junction, Colorado. The
preliminary allocation of fair value to the assets acquired and liabilities assumed was $79 million for property,
plant and equipment, $30 million for inventory, and $41 million for environmental liabilities assumed. The fair
value assigned to other liabilities was $6 million. The acquisition was accounted for by the purchase method of
accounting.
  
The results of operations for these assets have been included in the consolidated financial statements from the
date of acquisition. The new operations have been reported as part of the Refining and Marketing — U.S.A.
segment in the Schedules of Segmented Data.
  
11. CREDIT FACILITIES
  
During the second quarter, the company entered into a new $600 million credit facility agreement. The new
facility is fully revolving for 364 days and expires in 2006. During the third quarter, the company renewed $200
million of its available credit and term loan facilities.
  
12. SUBSEQUENT EVENT
  
In October, 2005, the Company received $166 million in proceeds related to its business interruption insurance
coverage. The business interruption insurance proceeds related to business activity during the nine months ended
September 30, 2005 and have accordingly been recognized as revenue in the third quarter. Additional business
interruption insurance proceeds will be recorded at the time of unconditional receipt.
                                                             
                                                          28
                                                                
highlights
(unaudited)
  
                                                                                   
                                                                                      2005                     
                                                                                                                  2004                     




Cash Flow from Operations                                                                                                                  




                                  
                                                                                                                                  
(dollars per common
share)                                                     
                                                                                                                                           




For the three months ended September 30                                                                                                    




Cash flow from operations (1)                                                      
                                                                                             1.42              
                                                                                                                         1.29              




                                           
                                                                                                                                 
For the nine months ended September
30                                                                                                                                         




Cash flow from operations (1)                                                      
                                                                                             2.74              
                                                                                                                         3.29              




                                                                                                                                 
Ratios                                                                                                                                     




                                                           
                                                                                                                                  
For the twelve months ended September 30                                                                                                   




Return on capital employed (%) (2)                                                 
                                                                                             13.8              
                                                                                                                         18.8              




Return on capital employed (%) (3)                                                 
                                                                                             10.5              
                                                                                                                         16.3              




Net debt to cash flow from operations (times) (4)                                  
                                                                                              1.8              
                                                                                                                          1.1              




Interest coverage on long-term debt (times)                                                                                                




   Net earnings (5)                                                                
                                                                                              9.8              
                                                                                                                         10.0              




   Cash flow from operations (6)                                                   
                                                                                             12.8              
                                                                                                                         12.7              




                          
                                                                                                                                 
As at September 30                                                                                                                         




Debt to debt plus shareholders’ equity (%) (7)                                     
                                                                                             38.0              
                                                                                                                         33.7              




                                                                                                                                 
Common Share Information                                                                                                                   




                          
                                                                                                                                  
As at September 30                                                                                                                         




Share price at end of trading (dollars per share)                                                                                          




   Toronto Stock Exchange — Cdn$                                                   
                                                                                         70.42                 
                                                                                                                    40.40                  




   New York Stock Exchange — US$                                                   
                                                                                         60.53                 
                                                                                                                    32.01                  




Common share options outstanding (thousands)                                       
                                                                                        19 378                 
                                                                                                                   21 279                  




                                           
                                                                                                                             
For the nine months ended September
30                                                                                                                                         




Average number outstanding, weighted monthly (thousands)                       
                                                                                  455 962
                                                                                   
                                                                                                   452 565                                 




  
Refer to the Quarterly Operating Summary for a discussion of financial measures not prepared in accordance
with generally accepted accounting principles (GAAP).

(1)           Cash flow from operations for the period; divided by the weighted average number of common shares 
           outstanding during the period.
  
(2)           Net earnings (2005 — $884 million; 2004 — $1,056 million) adjusted for after-tax financing expenses
           (2005 — income of $57 million; 2004 — expense of $18 million) for the twelve month period ended;
           divided by average capital employed (2005 — $5,929 million; 2004 — $5,724 million). Average capital
           employed is the sum of shareholders’ equity and short-term debt plus long-term debt less cash and cash
           equivalents, at the beginning and end of the year, divided by two, less capitalized costs related to major
           projects in progress (as applicable). Return on capital employed (ROCE) for Suncor operating segments
           as presented in the Quarterly Operating Summary is calculated in a manner consistent with consolidated
           ROCE. For a detailed reconciliation of ROCE prepared on an annual basis, see page 51 of Suncor’s
           2004 Annual Report to Shareholders.
  
(3)           If capital employed were to include capitalized costs related to major projects in progress (average 
           capital employed including major projects in progress: 2005 — $7,762 million; 2004 — $6,617 million),
           the return on capital employed would be as stated on this line.
  
(4)           Short-term debt plus long-term debt less cash and cash equivalents, divided by cash flow from
           operations for the twelve month period then ended.
  
(5)           Net earnings plus income taxes and interest expense, divided by the sum of interest expense and 
           capitalized interest.
  
(6)           Cash flow from operations plus current income taxes and interest expense; divided by the sum of 
           interest expense and capitalized interest.
  
(7)           Short-term debt plus long-term debt; divided by the sum of short-term debt, long-term debt and
           shareholders’ equity.
                                                              
                                                           29
                                                                                     
quarterly operating summary
(unaudited)
  
                                                                                                                                                                         Nine months                         Total
                                                   
                                                                                 For the quarter ended                                                              
                                                                                                                                                                            ended                         
                                                                                                                                                                                                              year                 




                                                   
                                                      Sep 30                
                                                                               June 30 Mar 31    
                                                                                                   Dec 31
                                                                                                                                           
                                                                                                                                              Sep 30                
                                                                                                                                                                       Sep 30   Sep 30
                                                                                                                                                                                                          
                                                                                                                                                                                                             Dec 31                




                                                   
                                                       2005                 
                                                                                2005      2005   
                                                                                                    2004
                                                                                                                                           
                                                                                                                                               2004                 
                                                                                                                                                                        2005     2004                     
                                                                                                                                                                                                              2004                 




OIL SANDS                                                                                                                                                                                                                          




Production (a)                                                                                                                                                                                                                     




Base operations                            125.2 119.5 121.2 206.9 230.2 122.0 218.4
                                                                                                                                                                                                          
                                                                                                                                                                                                             215.6                 




Firebag                                     23.0
                                                   
                                                    8.7   18.7   15.6   
                                                                        7.3 
                                                                              16.8   9.4                                                                                                                  
                                                                                                                                                                                                              10.9                 




Total production                           148.2 128.2 139.9 222.5 237.5 138.8 227.8
                                                                                                                                                                                                          
                                                                                                                                                                                                             226.5                 




Sales (a)                                                                                                                                                                                                                          




Light sweet crude oil                       69.9
                                                   
                                                   48.3   75.3 115.3 113.5
                                                                            
                                                                              64.4 114.5                                                                                                                  
                                                                                                                                                                                                             114.9                 




Diesel                                      10.6
                                                   
                                                    9.0   11.8   25.5 28.7
                                                                            
                                                                              10.5  28.6                                                                                                                  
                                                                                                                                                                                                              27.9                 




Light sour crude oil                        41.7
                                                   
                                                   54.2   38.5   80.9 76.3
                                                                            
                                                                              44.8  73.2                                                                                                                  
                                                                                                                                                                                                              75.1                 




Bitumen                                     22.3
                                                   
                                                    9.6   18.4   11.0   
                                                                        7.9 
                                                                              16.8   7.8                                                                                                                  
                                                                                                                                                                                                               8.4                 




Total sales                                144.5 121.1 144.0 232.7 226.4 136.5 224.1
                                                                                                                                                                                                          
                                                                                                                                                                                                             226.3                 




Average sales price (1),(b)                                                                                                                                                                                                        




Light sweet crude oil                      52.08 39.20 45.41 50.55 46.03 46.34 43.98
                                                                                                                                                                                                          
                                                                                                                                                                                                             45.60                 




Other (diesel, light sour crude oil and
bitumen)                                   59.70 50.47 47.31 39.62 42.29 52.48 38.96
                                                                                                                                                                                                          
                                                                                                                                                                                                             39.13                 




Total                                      56.01 45.98 46.44 44.68 44.08 49.72 41.45
                                                                                                                                                                                                          
                                                                                                                                                                                                             42.28                 




Total*                                     67.95 57.24 54.80 54.40 52.72 60.21 48.17
                                                                                                                                                                                                          
                                                                                                                                                                                                             49.78                 




                                                                                                                                                                                                                    
CASH OPERATING COSTS AND TOTAL OPERATING COSTS — BASE OPERATIONS                                                                                                                                                                   




Cash costs                                 18.00 16.30 15.10 10.90 9.00 16.50
                                                                            
                                                                                    9.45                                                                                                                  
                                                                                                                                                                                                              9.80                 




Natural gas                                 4.60
                                                   
                                                   2.65   4.70   2.20 1.40
                                                                            
                                                                              4.00  1.90                                                                                                                  
                                                                                                                                                                                                              2.00                 




Imported bitumen                              —
                                                   
                                                     —    0.10   0.10 0.10
                                                                            
                                                                                —   0.20                                                                                                                  
                                                                                                                                                                                                              0.15                 




Cash operating costs (2),(c)               22.60 18.95 19.90 13.20 10.50 20.50 11.55
                                                                                                                                                                                                          
                                                                                                                                                                                                             11.95                 




Firebag start-up costs                        —
                                                   
                                                     —      —      —    
                                                                         —  
                                                                                —   0.40                                                                                                                  
                                                                                                                                                                                                              0.30                 




Total cash operating costs (3),(c)         22.60 18.95 19.90 13.20 10.50 20.50 11.95
                                                                                                                                                                                                          
                                                                                                                                                                                                             12.25                 




Depreciation, depletion and amortization    9.00
                                                   
                                                   9.45   9.05   6.25 5.70
                                                                            
                                                                              9.20  6.00                                                                                                                  
                                                                                                                                                                                                              6.10                 




Total operating costs (4),(c)              31.60 28.40 28.95 19.45 16.20 29.70 17.95
                                                                                                                                                                                                          
                                                                                                                                                                                                             18.35                 




                                                                                                                                                                                                                    
CASH OPERATING COSTS AND TOTAL OPERATING COSTS — FIREBAG                                                                                                                                                                           




Cash costs                                  6.85 18.95
                                                   
                                                          8.90   7.00 14.90
                                                                            
                                                                              9.70  9.30                                                                                                                  
                                                                                                                                                                                                              8.30                 




Natural gas                                13.70 16.40 10.10 10.45 11.90 12.80 11.70
                                                                                                                                                                                                          
                                                                                                                                                                                                             11.20                 




Cash operating costs (5),(c)               20.55 35.35 19.00 17.45 26.80 22.50 21.00
                                                                                                                                                                                                          
                                                                                                                                                                                                             19.50                 




Depreciation, depletion and amortization    4.10
                                                   
                                                   7.60   4.75   5.55 7.45
                                                                            
                                                                              4.95  6.35                                                                                                                  
                                                                                                                                                                                                              6.00                 




Total operating costs (6),(c)              24.65 42.95 23.75 23.00 34.25 27.45 27.35
                                                                                                                                                                                                          
                                                                                                                                                                                                             25.50                 




                                   
                                                                                                                                                                                                                    
(for the period ended)                                                                                                                                                                                                             




Capital employed (i)                           
                                                4 492 4 303 4 231 4 169 4 182
                                                                                                                                                                                                                                   




                                           
                                                                                                                                                                                                                        
(for the twelve months ended)                                                                                                                                                                                                      




Return on capital employed (j)                     
                                                       17.1                 
                                                                                 17.2                
                                                                                                        19.6            
                                                                                                                           22.9            
                                                                                                                                               22.8                                                                                




Return on capital employed (j) ****                
                                                       12.8                 
                                                                                 13.4                
                                                                                                        15.9            
                                                                                                                           18.8            
                                                                                                                                               19.0                                                                                




                                                                                    
                                                                                 30
(unaudited)
  
  
                                                                                          Nine months
                                               
                                                     For the quarter ended                   ended          Total year                                                                                                     



                                                                                                                                                                                                                           




                                             Sep 30 June 30    Mar 31     Dec 31 Sep 30 Sep 30     Sep 30    Dec 31
                                             2005    2005    2005    2004    2004    2005           2004      2004       
NATURAL GAS                                                                                                                                                                                                                




Gross production **                                                                                                                                                                                                        




Natural gas (d)                                
                                                    200             
                                                                         175             
                                                                                              191             
                                                                                                                  193               
                                                                                                                                        201              
                                                                                                                                                              189              
                                                                                                                                                                                    203              
                                                                                                                                                                                                          200              




Natural gas liquids (a)                        
                                                     2.2            
                                                                         2.2             
                                                                                               3.0            
                                                                                                                   2.9              
                                                                                                                                         2.6             
                                                                                                                                                               2.5             
                                                                                                                                                                                     2.3             
                                                                                                                                                                                                           2.5             




Crude oil (a)                                  
                                                     0.7            
                                                                         1.0             
                                                                                               0.9            
                                                                                                                   1.0              
                                                                                                                                         1.0             
                                                                                                                                                               0.9             
                                                                                                                                                                                     1.0             
                                                                                                                                                                                                           1.0             




Total gross production (e)                     
                                                   36.3             
                                                                        32.4             
                                                                                             35.7             
                                                                                                                  36.1              
                                                                                                                                        37.1             
                                                                                                                                                             34.8              
                                                                                                                                                                                   37.1              
                                                                                                                                                                                                         36.8              




Average sales price (1)                                                                                                                                                                                                    




Natural gas (f)                                
                                                   8.32             
                                                                        7.29             
                                                                                             6.81             
                                                                                                                  7.02              
                                                                                                                                        6.49             
                                                                                                                                                             7.50              
                                                                                                                                                                                   6.60              
                                                                                                                                                                                                         6.70              




Natural gas (f) *                              
                                                   8.34             
                                                                        7.26             
                                                                                             6.74             
                                                                                                                  6.98              
                                                                                                                                        6.53             
                                                                                                                                                             7.47              
                                                                                                                                                                                   6.66              
                                                                                                                                                                                                         6.73              




Natural gas liquids (b)                        
                                                  58.00             
                                                                       52.52             
                                                                                            38.32             
                                                                                                                 46.46              
                                                                                                                                       42.06             
                                                                                                                                                            48.52              
                                                                                                                                                                                  41.31              
                                                                                                                                                                                                        42.82              




Crude oil — Conventional (b)                   
                                                  63.77             
                                                                       63.86             
                                                                                            61.40             
                                                                                                                 55.26              
                                                                                                                                       55.43             
                                                                                                                                                            62.99              
                                                                                                                                                                                  48.85              
                                                                                                                                                                                                        50.41              




Net wells drilled                                                                                                                                                                                                          




Conventional — Exploratory
   ***                                         
                                                      4             
                                                                         —               
                                                                                                5             
                                                                                                                    —               
                                                                                                                                           3             
                                                                                                                                                                9              
                                                                                                                                                                                     10              
                                                                                                                                                                                                           10              




                      — Development
     
                                               
                                                      2             
                                                                          2              
                                                                                                5             
                                                                                                                     5              
                                                                                                                                           3             
                                                                                                                                                                9              
                                                                                                                                                                                     11              
                                                                                                                                                                                                           16              




                               
                                               
                                                      6             
                                                                          2              
                                                                                               10             
                                                                                                                     5              
                                                                                                                                           6             
                                                                                                                                                               18              
                                                                                                                                                                                     21              
                                                                                                                                                                                                           26              




(for the period
   ended)                                                                                                                                                                                                                  




Capital employed (i)                           
                                                   598              
                                                                        564              
                                                                                             490              
                                                                                                                  448               
                                                                                                                                        410                                                                                




                                       
                                                                                                                                                                                                                
(for the twelve months
   ended)                                                                                                                                                                                                                  




Return on capital employed
   (j)                              22.7   
                                             22.5
                                               
                                                      26.2                                                    
                                                                                                                  27.1     30.4                                                                                            




                                                                                                                                                                                                                
ENERGY MARKETING AND REFINING — CANADA                                                                                                                                                                                     




Refined product sales (g)                                                                                                                                                                                                  




Transportation fuels                                                                                                                                                                                                       




Gasoline                                                                                                                                                                                                                   




   Retail                            4.2   
                                              4.8
                                               
                                                       4.6                                                    
                                                                                                                   4.8      4.6                          
                                                                                                                                                              4.5              
                                                                                                                                                                                    4.5              
                                                                                                                                                                                                          4.6              




   Other                             4.2   
                                              4.1
                                               
                                                       4.0                                                    
                                                                                                                   4.1      4.3                          
                                                                                                                                                              4.1              
                                                                                                                                                                                    4.1              
                                                                                                                                                                                                          4.1              




Jet fuel                             0.9   
                                              0.8
                                               
                                                       0.9                                                    
                                                                                                                   1.0      1.0                          
                                                                                                                                                              0.9              
                                                                                                                                                                                    0.9              
                                                                                                                                                                                                          0.9              




Diesel                               3.7   
                                              3.3
                                               
                                                       2.7                                                    
                                                                                                                   3.3      3.0                          
                                                                                                                                                              3.2              
                                                                                                                                                                                    3.0              
                                                                                                                                                                                                          3.1              




Total transportation fuel sales     13.0   
                                             13.0
                                               
                                                      12.2                                                    
                                                                                                                  13.2     12.9                          
                                                                                                                                                             12.7              
                                                                                                                                                                                   12.5              
                                                                                                                                                                                                         12.7              




Petrochemicals                       0.7   
                                              0.8
                                               
                                                       0.8                                                    
                                                                                                                   0.8      0.7                          
                                                                                                                                                              0.7              
                                                                                                                                                                                    0.8              
                                                                                                                                                                                                          0.8              




Heating oils                         0.2   
                                              0.3
                                               
                                                       0.8                                                    
                                                                                                                   0.5      0.2                          
                                                                                                                                                              0.4              
                                                                                                                                                                                    0.4              
                                                                                                                                                                                                          0.4              




Heavy fuel oils                      0.8   
                                              1.4
                                               
                                                       1.0                                                    
                                                                                                                   0.8      0.5                          
                                                                                                                                                              1.1              
                                                                                                                                                                                    0.7              
                                                                                                                                                                                                          0.7              




Other                                0.9   
                                              0.6
                                               
                                                       0.3                                                    
                                                                                                                   0.3      1.0                          
                                                                                                                                                              0.5              
                                                                                                                                                                                    1.0              
                                                                                                                                                                                                          0.8              




Total refined product sales         15.6   
                                             16.1
                                               
                                                      15.1                                                    
                                                                                                                  15.6     15.3                          
                                                                                                                                                             15.4              
                                                                                                                                                                                   15.4              
                                                                                                                                                                                                         15.4              




                                                                                                                                                                                                                
Margins (h)                                                                                                                                                                                                                




Refining (7)                         9.2   
                                              7.3
                                               
                                                       4.8                                                    
                                                                                                                   7.9              
                                                                                                                                         8.8             
                                                                                                                                                              7.2              
                                                                                                                                                                                    8.1              
                                                                                                                                                                                                          8.0              




Refining (7) *                      10.1   
                                              7.6
                                               
                                                       4.8                                                    
                                                                                                                   7.8              
                                                                                                                                         8.8             
                                                                                                                                                              7.5              
                                                                                                                                                                                    8.3              
                                                                                                                                                                                                          8.1              




Retail (8)                           5.4   
                                              3.8
                                               
                                                       4.7                                                    
                                                                                                                   4.5              
                                                                                                                                         3.7             
                                                                                                                                                              4.6              
                                                                                                                                                                                    4.3              
                                                                                                                                                                                                          4.4              




                                                                                                                                                                                                                
Crude oil supply and
   refining                                                                                                                                                                                                                




Processed at Sarnia refinery
   (g)                              10.7   
                                             11.1
                                               
                                                      10.1                                                    
                                                                                                                  11.3              
                                                                                                                                        11.6             
                                                                                                                                                             10.6              
                                                                                                                                                                                   11.0              
                                                                                                                                                                                                         11.1              




Utilization of refining capacity
   (j)                                96   
                                              100
                                               
                                                        91                                                    
                                                                                                                  101               
                                                                                                                                        104              
                                                                                                                                                               96              
                                                                                                                                                                                     99              
                                                                                                                                                                                                         100               




                               
                                                                                                                                                                                                               
(for the period
   ended)                                                                                                                                                                                                                  
Capital employed (i)                  
                                         547              
                                                             507              
                                                                                   525                
                                                                                                         512              
                                                                                                                             528                                                             




                              
                                                                                                                                                                                   
(for the twelve months
   ended)                                                                                                                                                                                    




 Return on capital employed
   (j)                                
                                         7.7              
                                                             10.1             
                                                                                       8.4            
                                                                                                         14.6             
                                                                                                                             11.2                                                            




 Return on capital employed
   (j) ****                           
                                         5.6              
                                                              8.1             
                                                                                       7.3            
                                                                                                         13.6             
                                                                                                                             10.8                                                            




  
                                                                                    
                                                                                 31
                                                                                      
(unaudited)
  
  
                                      
                                                       For the quarter ended                                                                   
                                                                                                                                                Nine months ended
                                                                                                                                                   
                                                                                                                                                                  Total year                                



                                                                                                                                                                                                            




                                         Sep 30   June 30      Mar 31      Dec 31                                            Sep 30             Sep 30    Sep 30   Dec 31
                                          2005     2005         2005       2004                                               2004               2005    2004       2004      
REFINING AND MARKETING — U.S.A.                                                                                                                                                                             




Refined product sales
   (g)                                                                                                                                                                                                      




Transportation fuels                                                                                                                                                                                        




Gasoline                                                                                                                                                                                                    




   Retail                       0.7
                                      
                                        0.7                                     
                                                                                    0.7               
                                                                                                          0.7             
                                                                                                                                 0.7               
                                                                                                                                                       0.7            
                                                                                                                                                                         0.7             
                                                                                                                                                                                            0.7             




   Other                        8.9
                                      
                                        5.0                                     
                                                                                    3.8               
                                                                                                          3.9             
                                                                                                                                 4.3               
                                                                                                                                                       5.9            
                                                                                                                                                                         3.7             
                                                                                                                                                                                            3.8             




Jet fuel                        0.8
                                      
                                        0.7                                     
                                                                                    0.7               
                                                                                                          0.6             
                                                                                                                                 0.7               
                                                                                                                                                       0.8            
                                                                                                                                                                         0.5             
                                                                                                                                                                                            0.5             




Diesel                          3.9
                                      
                                        3.1                                     
                                                                                    2.6               
                                                                                                          2.5             
                                                                                                                                 2.5               
                                                                                                                                                       3.2            
                                                                                                                                                                         2.2             
                                                                                                                                                                                            2.2             




Total transportation fuel
   sales                      14.3
                                      
                                        9.5                                     
                                                                                    7.8               
                                                                                                          7.7             
                                                                                                                                8.2                
                                                                                                                                                      10.6            
                                                                                                                                                                         7.1             
                                                                                                                                                                                            7.2             




Asphalt                         1.8
                                      
                                        1.9                                     
                                                                                    1.6               
                                                                                                          1.1             
                                                                                                                                1.9                
                                                                                                                                                       1.8            
                                                                                                                                                                         1.6             
                                                                                                                                                                                            1.5             




Other                           1.2
                                      
                                        1.2                                     
                                                                                    0.7               
                                                                                                          0.7             
                                                                                                                                0.8                
                                                                                                                                                       1.1            
                                                                                                                                                                         0.5             
                                                                                                                                                                                            0.6             




Total refined product sales   17.3
                                      
                                      12.6                                      
                                                                                   10.1               
                                                                                                          9.5             
                                                                                                                               10.9                
                                                                                                                                                      13.5            
                                                                                                                                                                         9.2             
                                                                                                                                                                                            9.3             




                                                                                                                                                                                                 
Margins (h)                                                                                                                                                                                                 




Refining (7)                    8.9
                                      
                                        9.5                                     
                                                                                    6.3               
                                                                                                          7.7             
                                                                                                                                 5.1               
                                                                                                                                                       8.5            
                                                                                                                                                                         6.4             
                                                                                                                                                                                            6.7             




Refining (7) *                  8.9
                                      
                                        9.5                                     
                                                                                    6.3               
                                                                                                          7.7             
                                                                                                                                 5.3               
                                                                                                                                                       8.5            
                                                                                                                                                                         6.6             
                                                                                                                                                                                            6.8             




Retail (8)                      7.5
                                      
                                        4.3                                     
                                                                                    3.3               
                                                                                                          6.0             
                                                                                                                                 4.2               
                                                                                                                                                       5.0            
                                                                                                                                                                         5.1             
                                                                                                                                                                                            5.4             




                                                                                                                                                                                                 
Crude oil supply and
   refining                                                                                                                                                                                                 




Processed at Denver
   refinery (g)               14.9
                                      
                                      11.4                                      
                                                                                    9.2               
                                                                                                          9.5             
                                                                                                                                 9.5               
                                                                                                                                                      12.3            
                                                                                                                                                                         8.6             
                                                                                                                                                                                            8.8             




Utilization of refining
   capacity (j)                104
                                      
                                       102                                      
                                                                                     96               
                                                                                                         100              
                                                                                                                                 99                
                                                                                                                                                      102             
                                                                                                                                                                         90              
                                                                                                                                                                                            92              




                          
                              
                                                                                                                                                                                                
(for the period ended)                                                                                                                                                                                      




Capital employed (i)                  
                                            354              
                                                                349             
                                                                                   262                
                                                                                                         232              
                                                                                                                                241                                                                         




                                                                                                                                                                                                 
(for the twelve months ended)                                                                                                                                                                               




Return on capital
   employed (j)                       
                                           32.2              
                                                                17.6            
                                                                                   14.5               
                                                                                                         12.2             
                                                                                                                               10.0                                                                         




Return on capital
   employed (j) ****                  
                                           21.6              
                                                                13.8            
                                                                                   12.2               
                                                                                                         11.0             
                                                                                                                                 9.6                                                                        




  
                                                                                      
                                                                                   32
                                                               
  
Non GAAP Financial Measures
  
Certain financial measures referred to in the Highlights and Quarterly Operating Summary are not prescribed by
generally accepted accounting principles (GAAP). Suncor includes cash flow from operations, return on capital
employed and cash and total operating costs per barrel data because investors may use this information to
analyze operating performance, leverage and liquidity. The additional information should not be considered in
isolation or as a substitute for measures of performance prepared in accordance with GAAP.
  
  
Definitions
  
(1) Average sales price             — This operating statistic is calculated before royalties and net of related
                                        transportation costs (including or excluding the impact of hedging activities
                                        as noted).
                                          
(2) Cash operating costs —          — Include cash costs that are defined as operating, selling and general
     Base operations                    expenses (excluding inventory changes), accretion expense, taxes other
                                        than income taxes and the cost of bitumen imported from third parties. Per
                                        barrel amounts are based on mining production volumes. For a
                                        reconciliation of this non GAAP financial measure see Management’s
                                        Discussion and Analysis.
                                          
(3) Total cash operating costs — Include cash operating costs — Base operations as defined above and cash
     — Base operations                  start-up costs for in-situ operations. Per barrel amounts are based on
                                        mining production volumes.
                                          
(4) Total operating costs —         — Include total cash operating costs — Base operations as defined above and
     Base operations                    non-cash operating costs.  Per barrel amounts are based on mining 
                                        production volumes.
                                          
(5) Cash operating costs —          — Include cash costs that are defined as operating, selling and general
     Firebag                            expenses (excluding inventory changes), accretion expense and taxes other
                                        than income taxes. Per barrel amounts are based on in-situ production
                                        volumes.
                                          
(6)  Total operating costs —        — Include cash operating costs — Firebag as defined above and non-cash
     Firebag                            operating costs. Per barrel amounts are based on in-situ production
                                        volumes.
                                          
(7) Refining margin                 — This operating statistic is calculated as the average wholesale unit price from
                                        all products less average unit cost of crude oil.
                                          
(8) Retail margin                   — This operating statistic is calculated as the average street price of Sunoco
                                        (Energy, Marketing and Refining — Canada) and Phillips 66-branded
                                        (Refining and Marketing — U.S.A.) retail gasoline net of federal excise tax,
                                        as applicable, and other adjustments, less refining gasoline transfer price.
  
  
Explanatory Notes
  
*      Excludes the impact of hedging activities.
         
** Currently all Natural Gas production is located in the Western Canada Sedimentary Basin.
         
*** Excludes exploratory wells in progress.
         
**** If capital employed were to include capitalized costs related to major projects in progress, the return on
      capital employed would be as stated on this line.
  
  
(a) thousands of barrels per day
             
                                            (e) thousands of barrels of oil
                                                     

                                                             
                                                                                        
                                                                                          (h) cents per litre
                                                                                            

                                                                                                    




                                             
                                                equivalent per day
                                                     
                                                                     
                                                                                                                    




(b) dollars per barrel
             
                                                                                        
                                                                                          (i) $ millions 
                                                                                            

                                                                                                    




                                            (f) dollars per thousand cubic feet
                                                     

                                                                     
                                                                                                                    




(c) dollars per barrel rounded
     
                                                                                        
                                                                                          (j) percentage
                                                                                            
                                                                                                    




    to the nearest $0.05                    (g) thousands of cubic metres per day
                                                                                                                    




                                                                     
                                                                                                                                    




(d) millions of cubic feet per day                                                                                  




  
  
Metric conversion
                                                                                                            




Crude oil, refined products, etc.        
                                           1m 3 (cubic metre) = approx. 6.29 barrels
                                                                                                                            




  
                                                           
                                                        33